Dairy expansion is continuing in Ireland, while the suckler-beef sector remains under pressure. As of August 31, 2018, 752,506 calves were registered to beef dams on Irish farms – back 33,966 head or 4.3% on the corresponding period in 2017.
A number of factors can be blamed for this fall; however, the lack of profitability in suckler systems and the decision to switch to dairy by some farmers has had a role to play.
Looking at dairy calf registrations for example, the figures show that dairy births stood at 1,340,338 head as of August 31, 2018 – up 40,994 head or 3.2% on the corresponding period in 2017.
Speaking at the recent Dairygold Beef Expo in Fermoy Mart, Bord Bia’s livestock sector manager Joe Burke outlined that the number of suckler cows in Ireland has dropped below the one million mark and that dairy cow numbers have reached 1.5 million.
“Looking at calf registrations based on breed – this year in comparison to last year – we have seen an increase in traditional breeds (Angus and Hereford); most of these animals are coming from a dairy background,” he explained.
“There has also been an increase in pure Friesian or dairy-bred genetics and a decline in the continental beef breeds – particularly Belgian Blue and Charolais; however, Simmental is up and Limousin is not as negative.
“This may be due to farmers trying to breed more of the maternal genetics in order to meet the criteria of the BDGP (Beef Data and Genomics Programme),” he added.
Image source: Bord Bia
Carcass weights
When we compare cattle slaughterings on a year-on-year basis, we can see that in 2018 an additional 40,499 head (week ending September 9) have been slaughtered when compared to the corresponding period in 2017.
Despite the difficult summer both in Ireland and in Europe, Joe noted that beef production has increased by 2.2%; however, consumption has decreased – largely because of the higher temperatures this summer.
“Much of this is the effect of additional cow culling activity and earlier marketing of prime cattle in any of these countries – particularly in Scandinavia and the Netherlands,” he explained.
For the month of July, Joe said, the average bullock and heifer carcass weights were back by 8kg/head; the average cull cow carcass was back by 15kg, so this has taken out a lot of the additional beef produced from the numbers slaughtered.
Image source: O’Gorman Photography
“It’s important that the animals are well-finished, so getting in-spec animals – which are meeting the desired criteria for customers – has been a little bit of a challenge,” he added.
Cattle prices
Moving to cattle prices, Joe said: “On average, Irish cattle prices have finished level after having increased by 1.5% – about 6c/kg – this year in comparison to last year.
“There was quite a positive period during late spring and early summer when our base price got up to 415c/kg for bullocks and 425c/kg for heifers.
“However, they fell off after that; part of the reason being the effect of the market and the demand was lower. Other countries started to slaughter more animals and it was more difficult to compete, particularly on the manufacturing beef side,” he explained.
Commenting on the UK market, he said: “Interesting, over the past few weeks, the British prices have started to recover and pick up strongly.
Currently the Irish cattle price – excluding VAT – is the equivalent to 380c/kg; the equivalent in the UK is 414c/kg.
“We have to remember that we export approximately 50% of our beef into the UK and the majority of the remainder is exported into continental European markets – such as Italy, France and the Netherlands – and we have to compete with that lower-priced raw material,” he concluded.